The Iraqi government has announced a series of new measures aimed at advancing smart solar energy projects, particularly following the conclusion of the U.S. exemption for the import of Iranian gas. This policy shift underscores the urgent need for local officials to expedite the development of designated lands for these projects.
In a meeting led by Prime Minister Mohamed Shia al-Sudani, attended by the Minister of Electricity and representatives from the National Television for Smart Solutions and Renewable Energy, discussions focused on the technical aspects and innovative strategies necessary for the successful implementation of solar energy initiatives. Key officials and advisors were also present to assess the current energy systems and production levels while exploring solar energy solutions.
The role of the private sector in contributing to smart energy generation projects across various governorates was also a significant topic. Local governments will oversee these initiatives, in coordination with the Ministry of Electricity, which is set to purchase the generated energy while monitoring pricing and operational costs. This collaboration is expected to prioritize the establishment of smart standards in project execution.
The Prime Minister directed local leaders to promptly prepare lands earmarked for private sector projects and to communicate priorities and limitations to potential companies and investors. Additionally, he instructed the Ministry of Electricity to swiftly draft technical contracts that align with defined standards and simplified processes, aiming for these documents to be presented to the Council of Ministers for approval.
Notably, the U.S. exemption allowing Iraq to import Iranian gas ended on March 8, 2025. Consequently, the Iraqi government now faces challenges in securing the necessary natural gas to operate power plants nationwide. Recently, the U.S. State Department confirmed the cessation of these exemptions, aligning with a broader strategy of economic pressure on Iran, aimed at addressing nuclear proliferation and regional instability.
Despite this difficult situation, the Iraqi Ministry of Electricity has not yet received formal notification from the United States regarding these changes. In response, officials emphasize their commitment to diversifying energy sources, including the development of solar energy systems and initiatives to transform government buildings into solar-powered facilities.
Regarding potential contingency plans to mitigate the impact of losing Iranian gas imports, the Ministry acknowledged that while alternative strategies may alleviate some of the shortfall, they do not eliminate the country’s reliance on imported gas given the limitations of national production.
Energy expert Kovand Sherwani has highlighted the challenges ahead, noting that Iraq currently faces a substantial energy deficit with a generation demand exceeding supply by approximately 26,000 megawatts. The cessation of Iranian gas imports could exacerbate this deficit by an additional 10,000 megawatts, potentially increasing the overall shortfall to nearly 70%.
